The Australian government has unveiled a comprehensive plan to make aviation more sustainable by 2050, introducing measures that promote the production and use of sustainable aviation fuel (SAF) and other low-carbon liquid fuels (LCLFs). Announced as part of its latest Aviation White Paper, these measures prioritise investment in SAF production pathways, potential incentives for local feedstock and fuel manufacturing, and robust certification protocols to track SAF and renewable diesel’s environmental credentials. New Zealand, meanwhile, is working on similar goals through its second national Emissions Reduction Plan, seeking insights from industry stakeholders. However, aviation groups in New Zealand have expressed concerns that current efforts lack the concrete policy steps needed to effectively drive decarbonisation. They suggest New Zealand adopt Australia’s approach, engaging in a similar consultation process with the aviation sector to establish a supportive policy framework.
Australia’s Aviation White Paper, Towards 2050, presented by Transport Minister Catherine King, emphasises the necessity of air transport due to the country’s vast geography, sparse population, and relative isolation. While indispensable, the aviation sector must still contribute to Australia’s Paris Agreement pledge to reduce greenhouse gas emissions by 43% from 2005 levels by 2030. In line with this, the nation is also preparing a 2035 emissions reduction target, expected to be submitted next year.
The White Paper identifies SAF as the only ready pathway to significantly reduce aviation emissions by 2050. Accordingly, the government will focus on policies to encourage SAF availability, including establishing a domestic industry. It plans to work with industry stakeholders on options to support production, demand, and incentives, while excluding blending mandates for now to assess their broader impact on demand, ticket prices, and regional operations.
Australia aims to broaden its Guarantee of Origin Scheme by 2028, ensuring the verified green credentials of new fuels align with global standards. New LCLF technologies using alternative feedstocks will also qualify for backing through the AUD 1.7 billion Future Made in Australia Innovation Fund, alongside an existing AUD 30 million allocation to support SAF and renewable diesel production using Australian-sourced materials. The Commonwealth Scientific and Industrial Research Organisation (CSIRO) SAF Roadmap identifies sugar cane, sorghum, and agricultural residues like husks, woodchips, and leaves as potential biofuel feedstocks.
Beyond SAF, the White Paper acknowledges the importance of research into electric and hydrogen propulsion, providing funding through the National Reconstruction Fund Corporation to support projects on renewable and low-emission technologies. The Regional Airports Programme is also slated for expansion to aid infrastructure enhancements that facilitate net-zero transition.
Minister King stated that the government’s “long-term policy vision” through this updated White Paper provides much-needed certainty to the aviation industry. She remarked that after 15 years since the last Aviation White Paper, this new direction aims to foster a “safe, competitive, sustainable, productive and efficient Australian aviation sector” by mid-century.
In New Zealand, the government’s draft Emissions Reduction Plan 2 (ERP2) received feedback from major aviation stakeholders, including the New Zealand Airports Association (NZAA), the Board of Airlines Representatives in New Zealand (BARNZ), and IATA, who called for a more proactive approach. Representing 46 airports and 26 airlines, this coalition argued the ERP2 lacks a structured pathway to establish necessary policies for aviation decarbonisation.
The group has called for a domestic SAF industry, suggesting the New Zealand government pursue public-private partnerships or co-investment models, such as the Regional Infrastructure Fund, to foster local SAF production. With the former Air New Zealand CEO, Prime Minister Christopher Luxon, in office, the group anticipates stronger government involvement in building a national SAF industry. They believe that while a substantial share of New Zealand’s SAF may be imported, a local industry would bolster regional employment and secure stable, resilient aviation fuel supplies.
In alignment with the recent bilateral climate initiatives between New Zealand and Australia, the coalition also urged the New Zealand government to prioritise industry consultation on LCLF policies. They advised New Zealand to examine Australia’s LCLF consultation process and adapt its findings to the local context. The coalition suggested that such analysis could allow New Zealand to either adopt similar policies or tailor them to its unique needs, informed by Australia’s policy decisions.
As both nations work to transition their aviation sectors towards sustainability, Australia’s structured policy roadmap and New Zealand’s commitment to regional collaboration signal the potential for an aligned, region-wide approach to achieving long-term emissions reductions in aviation.
